Gold was trading lower in the Indian market on June 30 tracking muted trend in international spot prices as investors remain cautious ahead of US jobs data due later this week.
On the Multi-Commodity Exchange (MCX), August gold contracts were trading 0.03 percent lower at Rs 46,543 for 10 grams at 0930 hours. July silver futures were trading 0.07 percent higher at Rs 67,277 a kilogram.
Spot gold was steady in the international market at $1,761.80 an ounce. US gold futures fell 0.1 percent to $1,761.80. For the month, prices were down 7.6 percent. For the quarter, gold had risen 3.2 percent, a Reuters report said.
Gold is seen as a hedge against inflation, although a Fed rate hike will increase the opportunity cost of holding bullion and dull its appeal, the report added.
Gold and silver plunged on June 29 amid strength in the dollar index and record gains in the US equity markets. August gold futures contract settled at $1763.60 a troy ounce and July silver contract settled at $25.87 a troy ounce.
Both precious metals ended weaker in the domestic market. August gold futures contract settled at Rs 46,555 for 10 gram and September silver futures settled at Rs 68,274 a kilogram.
Gold and silver prices slipped to a two-and-a-half -month low after the dollar index crossed 92 marks again. Record gains in US equities and strength in the dollar index, eased safe-haven buying in both metals, experts said.
“Ahead of the US ADP non-farm employment data, both precious metals to remain volatile in Wednesday’s session. Gold prices could show further weakness if the price breaches major support of $1,750 per troy ounce,” Manoj Kumar Jain, Director, Head-Commodity & Currency Research, Prithvifinmart Commodity Research, said.
Gold has support at $1,750-1,734 per and resistance at $1,774-1,788. Silver has support at $25.55-25.20 and resistance at $26.20-26.55, he said.
On MCX, gold has support at Rs 46,330-46,100 and resistance at Rs 46,770-46,920, he said.
Jain suggests selling in gold on a rise around 46,750 with a stop loss of 46,920 for the target of 46,300.
Technical indicators
Expert: Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities
Comex gold was unchanged near $1,764 after declining 1 percent the previous day. Gold was under pressure on expectations of monetary tightening by the Fed and US economic optimism, which would underpin the dollar. ETF investors also moved to the sidelines.
Renewed virus concerns and mixed economic data from major economies supported the prices. Gold may witness choppy trade but general bias would be weak.
Expert: Amit Khare, AVP- Research Commodities, Ganganagar Commodities Limited
Both gold and silver are in oversold zones. The momentum indicator RSI is giving strong positive divergence in the four-hour chart.
Traders are advised to ignore fresh selling at lower levels and create a long position. Traders should also focus on important technical levels given below for the day:
August gold closing price Rs 46,555, support 1: 46,200; support 2: 46,000; resistance 1: 46,970 and resistance 2: 47,400.
July Silver closing price: Rs 67,232; support 1: 66,400; support 2: 65,600; resistance 1: 68,100 and resistance 2: 68,850.
Expert: Abhishek Chauhan Head Commodities & Currencies, Swastika Investmart
Gold and silver saw a breakdown on June 29, falling more than a percent. The strength in the dollar and some rebound in cryptocurrencies weighed on the precious metal.
Selling momentum may get stronger in gold if prices fall below 46,200, while resistance is seen at 46,800. Silver has support at 67,500 and resistance at 69,000.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
